China’s Gold “Nuclear”Card Would Shock the World. (Uncut) 04-09-2025

China’s Gold “Nuclear”Card Would Shock the World.

There could be a nuclear, and by nuclear I’m using a metaphor here, a nuclear card that China could use vis-a-vis gold, but also that the U.S. could use vis-a-vis treasuries, and either of them would destroy the integrity of the U.S. dollar and the whole fiat currency system that we have. Wednesday, April 9th, 2025, Monecco 64, Humboldt Alternative Economics, and contrarian views. Well, I said in my post yesterday that I expected the markets to remain volatile.

Yes, I was playing golf yesterday. I had a nice time, didn’t play as well as I wanted to. That seems to always be the way, but be as it may, after I finish playing and I’ll give you a little bit of anecdotal evidence or story that reflects how asleep most people are to what’s on in the markets and to what’s going on vis-a-vis the tariffs and the U.S. war on the world, economic war on the world.

Well, we finished playing. We’re six guys and we sat down for a drink and I heard two of them say, well, the stock market is back up, everything’s fine, and I just said, almost under my breath, but I think they could hear. I said, well, it’s just a dead cat bounce.

They didn’t really inquire as to what that was and they just said, well, it’s going to keep going up as always. It’s going to come back. Don’t worry.

And I think that’s the mentality of most baby boomers. I’m just on the edge of a baby boomer. I guess I was born in 64, but these guys were a bit older or maybe a little younger, but all retired.

And I think they’re going to get a shock because what I’m seeing here is very serious. And we’re going to talk about China in particular and what China could do to fight back. And I think China, I’m sorry to say, I’m not pro China, but I think they’ve got the upper hand and the United States is playing with fire.

They are alienating one of the, well, probably the biggest creditor nation to the United States. Yes. And we’re hearing things like, well, China has a lot to lose, but we’re going to look at that as well.

And we’re going to touch upon U.S. treasuries because I was one of the first ones to notice on Saturday. I made a post, I posted a video about the huge discrepancy I saw at the end of the day on Friday. And I thought that was really serious when the 10-year treasury rallied from 385 to 4%, which is a bad thing.

That means people are selling bonds. That means that mortgage rates are going to be higher. And I said that we need to keep an eye on this.

And I said that Scott Besant’s gambit might be backfiring. That gambit, of course, is allowing the stock market to crash in order to bring treasury yields down. But as I speak here this morning, London Time 809, the 10-year yield has traded up as high as 4.51%. Yes, it’s almost back up to 5%, which is Scott Besant’s no-no area.

He said in his interview with Tucker Carlson, and I said that again, he showed his cards to the world. He showed his cards to the Chinese. And the Chinese have the best card of them all.

And that’s the gold card. We’re going to look at that. And it could be something that we’ve never seen before.

It could be the end of the dollar and all other fiat currencies. Yes, the Chinese yuan is a fiat currency, but we’re going to look at that today. And one thing that I wanted to talk about is this guy, Peter Navarro.

And I think Musk was critical of him. I’m not sure what he said about him, but not very nice comments. And I think Musk is right.

And I saw him on an interview with Fox News, saying that he can guarantee that the Dow will go to 50,000. He can guarantee that we’re not going to go into recession, meaning the US. And then at the end, he said, and yes, treasury yields are going to go down and mortgage rates are going to go down.

But he forgot about China. China has, I think, let’s see, almost $800 billion worth of treasuries. And that’s what I want to talk about today and gold as well.

So let’s go to straight to treasuries. There’s a lot of speculation, of course, that the Chinese could be fighting back this 104% tariff, which is crazy that the US has imposed as of today on China. They could start unloading treasuries and that hurts the US treasury, of course, because they have debt up to here.

And the cost of paying that debt, paying the interest is rising. It’s risen since Friday. It’s risen.

Well, if we take four and a half percent, that’s $65 billion since Friday. And I saw a comment from the White House or President Trump that they’re making $2 billion a day from tariffs. Well, that’s a drop in the ocean compared to the moves in the treasury market.

So, yeah, there’s that old saying, the best laid plans of mice and men often go awry. And that’s one thing that I noted a few days ago in one of my videos that, yeah, you can tinker with tariffs and say, oh, we’re going to get this from this country, from that. But you can’t control what countries are going to do.

They’re not part of the domestic United States. They can react whatever way they want. But I think there could be a nuclear and by nuclear, I’m using a metaphor here, a nuclear card that China could use vis-a-vis gold, but also that the US could use vis-a-vis treasuries.

And either of them would destroy the integrity of the US dollar and the whole fiat currency system that we have as a whole. Maybe that’s the intention of the Trump administration. He did say some months ago that he wanted to obliterate the national debt.

Well, how do you do that? Well, you destroy the currency. Maybe that’s the plan. Maybe that’s why China has been buying so much gold.

And talking about gold right now, that’s one of the cards, the nuclear cards that China has is to reveal to the world how much gold it actually has. We’ve got an official figure of 2,290 tons, which is a joke. And this is not me talking.

It’s analysts like Alastair McLeod, Ronan Manley, Dominic Frisbee. Many other people have done a lot of research about how much China, how much gold, excuse me, China produces a year. China is one of the producers a year.

And the fact that they never export any of the gold. And some estimates put China’s gold reserves, be it from the central bank and state-owned entities, and this is not counting the public, they put the reserves at over 30,000 tons. So it’s weird that as far as the U.S. gold goes in their reserves, there’s always a doubt that there’s a lot less and that it’s not there.

But with China, it’s the other way around. So their nuclear card vis-a-vis this whole tariff war is coming out and saying, we’ve decided to tell the world that we have x amount of gold. It’s not the 2,290 that the World Gold Council reports.

And why would that be bad for the dollar? Well, because the anti-dollar is gold. And if your major economic competitor has 32,000 tons, and there’s doubt whether you have 8,000 tons, you can bet that the dollar is going to get hammered. The price of gold will go through the roof.

And that’s how that’s reflected, the collapse of the dollar is the move up in gold. So that’s the Chinese nuclear card. And they could have used it maybe years ago.

But I think the Chinese, they’re very good negotiators, contrary to maybe President Trump’s belief that he’s the top guy in terms of getting a deal. I think the Chinese, they’ve got a lot of experience over the millennia. So that’s the gold nuclear card.

What about the U.S.? What nuclear card does it have that would actually be shooting itself in the foot? And when I listen to people like Peter Navarro that are advising the administration, I can see these people doing this, not realizing how much of a blunder it would be. Well, we don’t really know exactly who’s selling treasury in the last few days. It’s only speculation that it could be the Chinese or even the Japanese to stem the strength of the yen, which doesn’t help them.

But let’s say the treasury and the administration and the Fed, they can see who’s selling treasuries. And let’s say it’s China. Well, the U.S. could decide to freeze China’s treasury portfolio or treasury reserves.

It’s actually held at the New York Fed. And what that would do, it would stop China from being able to transact in those treasuries so they wouldn’t be able to sell to keep and make the price go lower and yields go higher and hurt the United States. So that’s what they could do.

But if the U.S. did that, though, it would be the end of the dollar as a reliable store value, as a reliable reserve, right? Because if you buy treasuries and then the United States can freeze them, that’s no good. And that’s why I think it would backfire. But I wouldn’t put it past them to try to do that.

So that’s why I think unfortunately for the United States, China holds all the cards. And some people might say, well, but China depends on the U.S. for all its exports. But I have had a look at some of the numbers.

And yes, the United States is important for China’s international trade. All the Chinese exports, 15% of them go to the United States. In terms of number, it’s 501 billion as of 2023 that it exported to the U.S. And if you look at Chinese GDP, which is around 18 trillion, that equates to 2.7% of their GDP.

And as I said, their reserves, treasury reserves around 760 billion. I mean the Russians who have a much smaller economy, they’ve been able to survive by having their 300 billion in reserves frozen. I’m sure the Chinese could too.

And I’m sure the Chinese could survive if they didn’t export one cent to the United States. You just have to look at the list of countries they export to. It’s a huge list.

I’m sure they could try to expand and find new markets. And I’m sure they would cover that 500 billion. It might take a year or two, a few years.

So that’s how I see things right now. And as I said, I think the public is totally asleep, not just in the United States, but here in Europe to what’s going on and how serious the situation is. Some people are talking about the possibility of a 1929, 1930s style crash and depression.

That’s possible. That’s very possible because if you destroy this global system that we’ve had since 1944 and since the beginning of the century with China and WTO, if you destroy it overnight, it’s not gradual. It will mean loads of bankruptcy.

And the top bankruptcy, of course, will be the U.S. Treasury. And that’s another reason why you want to have physical gold and silver. And I mean, I can’t emphasize how important that is to have some of that outside the system because, yeah, it’s not going to get better.

And as I speak today here, it’s 822 a.m. London time. Gold is at 3,045, up 62 bucks. So maybe people are starting to wake up.

I don’t know. Maybe not. It’s up 2 percent.

We’ve got even silver coming up now. It’s up 1.85 percent at 3037. The stock market was down a lot more earlier on.

Right now, it’s kind of just lower by very little. But for example, the Dow future got down to 36,690. We’re now at 37,550.

So it was down like almost a thousand points earlier. And I expect continued volatility. I think there were some comments here from Chinese officials.

One of them is China urges dialogue with the U.S. to resolve trade disputes. And I also saw China’s foreign ministry on U.S. tariffs. The U.S. continues to abuse tariffs to pressure China.

China firmly opposes this and will never accept this kind of bullying. So there we go. We’ll have to see how President Trump responds.

And I think he’s not going to budge because if he does, he’ll lose face and he’ll lose, of course. So what else is there that I wanted to speak about? Let’s have a quick look. Oh, yeah.

On the freezing of reserves. Yeah, the United States did that to Switzerland during World War II. And Switzerland was a friend.

Well, technically neutral, but a friendly country. So it’s not out of the realms of the possibility that they might think of freezing China’s treasury reserves. But that would be really all hell would break loose in the financial markets, in the currency markets.

And yeah, gold would be unobtainable. I think gold and silver. So, yeah, that’s it.

We’re going to keep an eye on everything. By the time you watch this, things could be completely different. I don’t know.

But that’s the whole point here of having something outside the system. And if you haven’t bought any gold or silver yet, or if you have and you want to add on, check out my affiliates. I have an affiliate in the U.S., Miles Franklin, and I have one in the U.K., Gold Investments.

And yes, with that, I’m going to wish you all a very good day. Take care. Bye.